Thursday Briefing: From DXY, Gold to Latest FX Headlines; Jan 26, 2023

US Dollar Index Overview

  • DXY trades in rigid boundaries and hovers around 101.70 mark.
  • It made intraday high at 101.96 and low at 101.50 mark.
  • A day Chart and H1 chart with triple EMA suggest bearish trend for the time being.
  • Immediate hurdles are seen at 102.11 to 101.54 mark.
  • A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

Technical Analysis: XAU/USD (Gold)

  • Gold depreciates on Thursday and rejects key resistance at $1,948 mark.
  • The pair made intraday high at $1,949 and Low at $1,931 mark.
  • A day chart and H1 chart with triple EMA suggest up trend for the time being.
  • A sustained close above $1,937 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,942 on H1 chart will test further supports.

Key Headlines for the FX market:

  • U.S. orders for manufactured goods jumped 5.6% in December because of a flush of new contracts for Boeing passenger planes, but business investment was weak again in another sign of a corroding U.S. economy.
  • U.S. Real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the fourth quarter of 2022, according to the “advance” estimate released by the Bureau of Economic Analysis.
  • The U.S. Treasury Department next week is likely to announce that it will offer fewer Treasury bills in the second quarter, after hitting its statutory borrowing limit.
  • Russia launched a rush-hour barrage of missiles towards Ukraine, killing at least one person, the day after Kyiv secured Western pledges of dozens of modern battlefield tanks to try to push back the Russian invasion.
  • Thousands of Australians marked the country’s national day celebrations with rallies in support of Indigenous people, many of whom describe the anniversary of the day a British fleet sailed into Sydney Harbour as “Invasion Day”.
  • European Union migration ministers meet today to discuss visa restrictions and better coordination inside the bloc to be able to send more people with no right to asylum in Europe back to their home countries.
  • President Joe Biden will use a speech at a steamfitters union hall today to launch an attack against Republicans who control the House of Representatives, saying that some of their proposals are dangerous for the U.S. economy.
  • The number of migrants from Cuba, Haiti, Nicaragua and Venezuela caught crossing the U.S.-Mexico border dropped off dramatically from December to January following new rules that expel them back to Mexico, the Department of Homeland Security said.

Source: Reuters

Keep an eye open for the latest news and fundamentals affecting the FX markets.

Take a look and do trade wisely!
Good Luck